We need more houses: rental market tightens

MACKAY'S real estate industry has been warned an influx of 3000 people could be on the cards if the region lands the $20million Qantas pilot academy, putting pressure on investors to return to the region to open up more houses.

The latest REIQ Rental Survey has revealed the Mackay market has reached its tightest point in six years with a vacancy rate of just 1.9 per cent - and that figure could shrink even further if Qantas gives us the green light.

REIQ Zone chairman Peter McFarlane says agents across the region are on the edge of their seats awaiting the "critical" Qantas academy location announcement after being told to expect an influx of new residents if Mackay secures the facility.

"We have been told as a real estate industry there is likely to be 3000 people coming to Mackay, not to be trained as pilots, that is outside the pilots, as the support industries," Mr McFarlane said.

"The teachers and all of those people that work in that industry. So 3000 people, that is going to be a need for like 1000 houses."

Mr McFarlane said with little more than 400 rental properties listed on realestate.com.au, Mackay was already nearing "shortage stage". He said the ever-tightening market has been a talking point among local agents for months, but the situation has not been officially reflected until now.

"The last quarter the figure was 3.6 per cent, which we thought was a bit high as far as vacancies goes, but 1.9 per cent is more a reflection of where the market is now," Mr McFarlane said.

"What that is telling us is demand is increasing for rental accommodation but the supply is not there. We are getting to a situation where we are going to have a shortage of rental accommodation."

With confidence high across the district, Mr McFarlane believes it's the perfect time for investors to return to the city, but says the banks need to change their lending guidelines to allow them to do so.

"If you look around Mackay, there is a lot of confidence. The community is walking around with its head up, there is money being spent in the community and council are being very progressive," he said.

"But we have a lag with banking institutions, who basically canned the Mackay region and the postcode 4740. The town has become vibrant but the banking institutions are still squeezing everyone by the throat.

"In a town the size of Mackay, you would expect 10 little townhouse developments happening at any one time, and a high rise building to be going up and a lot of single dwelling units going on in subdivisions."

Mr McFarlane said it wasn't uncommon for rental property inspections to attract dozens of applicants and if those applicants have missed out on other properties, they will come armed with completed paperwork to hand to agents as they step through the front door.

She said most rentals are being snapped up within a week of hitting the market.

"There seems to be a lot more confidence in the market with people moving back to town," Ms Richards said.

"We are getting people coming back because Mackay has become a bit more cheaper than it used to be. Prices are starting to increase a little bit but not as high as what they were previously when people decided to leave.

"We are getting quite a few applications for each property and it's a bit tougher for people to secure a rental. We are hearing of people missing out on quite a few so it looks like it is starting to get a bit harder for people."